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TMI Blog1998 (5) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion that the assessment was not completed within the statutory time laid down under section 17A of the Wealth-tax Act, 1957, notwithstanding the fact that the assessment order was made on March 28, 1979, and the tax computation sheets (assessments/refund forms ITNS 150) were made on March 30, 1979 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the provisions of rule 1BB of the Wealth-tax Rules which came into force from April 1, 1979, were applicable to the assessment of the assessee to wealth-tax for the assessment year ?" In Wealth-tax Reference No. 58 of 1983, the Tribunal has referred the following questions under section 27(1) of the said Act: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 16A of the Act in respect of the immovable properties including lands which were claimed by the assessee to be agricultural. The Appellate Assistant Commissioner held that the assessments made by the Wealth-tax Officer were not time barred. It was further held that the reference made by the Wealth-tax Officer under section 16A was not valid in respect of the agricultural lands and a direction was given to the Wealth-tax Officer to accept the values of immovable properties as returned by the assessee. The Tribunal, on appeal by the Revenue, on the findings of the Appellate Assistant Commissioner that the reference under section 16A made by the Wealth-tax Officer to the valuation cell was not valid and on cross objections by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Mr. Divetia, the learned counsel appearing for the assessee, on the other hand, contended that not only the assessment order was required to be signed by the Wealth-tax Officer even the determination of tax was equally required to be signed, He submitted that the process of assessment included the process of determination of tax. The provisions relating to assessment of wealth are contained in Chapter IV of the said Act. In cases of regular assessment of wealth made under section 16(3) of the Act, the Assessing Officer after taking into account all the relevant material which he may have gathered has to make an order in writing, for assessing the net wealth of the assessee and to determine the sum payable on the basis of such assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the said provisions if he only puts his signature on the assessment of wealth and does not so authenticate by signature the determination of the sum payable. The words "sum payable" are of wider amplitude than the words tax payable. Therefore, there is greater reason for the Assessing Officer to work out the sum payable pursuant to the assessment of wealth made by him. Now, coming to the facts of this case, we may take note of the findings of fact arrived at by the Tribunal in its own words, i.e. : "We inspected the assessment records and found that tax computation sheets which are described as 'assessment /refund forms' were ITNS 150 and these forms of all the six assessment years bore the date March 30, 1979 (the Appellate Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Kalyankumar Ray v. CIT [1991] 191 ITR 634 in which the Supreme Court held in context of a similar provision of section 143(3) of the Income-tax Act, 1961, that assessment was an integrated process involving not only the assessment of the total income but also the determination of the tax. It was held that the latter was as crucial as the former. It was observed that all that was needed was that there must be some writing initialled or signed by the Income-tax Officer before the period of limitation prescribed for completion of the assessment has expired, in which the tax payable is determined. The Supreme Court in fact observed that to avoid unnecessary controversies like this, the Department should, in future, adopt the salutary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In view of this settled legal position, we hold that the Tribunal was right in coming to the conclusion that the assessment was not completed within the statutory time limit laid down under section 17A of the Wealth-tax Act, 1957, and question No. 1 of Wealth-tax Reference No. 43 of 1983 as well as question No. I of Wealth-tax Reference No. 58 of 1983 are answered in the affirmative against the Revenue and in favour of the assessee. As regards the above question No. 5 of Wealth-tax Reference No. 58 of 1983, in view of the settled position that the assessment includes determination of the sum payable and the statutory provisions required the assessment to be made within the time prescribed, it cannot be said that there was only a mistake ..... X X X X Extracts X X X X X X X X Extracts X X X X
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